By Daniel Martin

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Water bosses will be given the power to cut bills for millions of poorer customers, Nick Clegg has announced.

The plan for means testing was revealed in Brazil where the Deputy Prime Minister is at a major environment summit.

According to campaigners, 2.4million households have difficulties paying their bills.

Water bills will be means tested to help 2.4m people who struggle to pay household bills under new plans announced by Nick Clegg

Water bills will be means tested to help 2.4m people who struggle to pay household bills under new plans announced by Nick Clegg

But the Taxpayers' Alliance raised concerns that the 'social tariffs' to help them will have to be mirrored by higher payments for the better off.

At present, companies are restricted by regulator Ofwat from cutting bills for certain customers but the new guidance will free them to do this.

The average water bill in England and Wales is 376, which costs 11 per cent of households more than 5 per cent of their  disposable income.

From Rio de Janeiro, Mr Clegg said: 'If you're struggling to make ends meet, not paying for essential utilities isn't an option but it can mean tough choices elsewhere, like sacrificing healthy meals or new school books.'

Deputy Prime Minister Nick Clegg's plan for means testing was revealed in Brazil where he is at a major environment summit

Deputy Prime Minister Nick Clegg's plan for means testing was revealed in Brazil where he is at a major environment summit

Environment Secretary Caroline Spelman said: 'Many people on low incomes have been struggling to pay their water bills, and these new measures will give them much-needed help.

'Water companies now have the chance to work with their customers to find a solution that works for them, and I hope to see that solution in place as soon as possible.' But Robert Oxley, of the TaxPayers' Alliance, said: 'All families are feeling the pinch, especially those on middle incomes.

'It would be wrong to try to trade bill-payers off against each other.' He urged ministers to scrap policies which he said are driving up bills, not 'tinker with who pays what'.

Water companies are also expected to support vulnerable customers with advice on how to use water more efficiently, guidance on whether a water meter could save them money and referrals to debt and benefits advice.

A spokesman for Downing Street was unable to say if the cost of the social tariffs would be borne by better-off households but added that the Prime Minister wanted to see prices fall.

 

Here's what other readers have said. Why not add your thoughts, or debate this issue live on our message boards.

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Anglian Water are rip-off merchants. Our bill is £520 for a small semi-detached house. I don't know where they get this average of £376 per year.

This is just another stealth tax so the government. doesnt have to admit to increasing taxes

I hated the idea of a water meter, but when I saw my water bill constantly rising, even though I live alone, I decided I should stop paying for neighbours who use oceans of water and just pay for myself. I now am very careful how much water I use pay only for what I use (besides all the standing charges which are ludicrous!) A sheltered accommodation unit near me doesn't have metered water and each elderly/disabled resident who occupies a 1-bed flat is paying £28+ a month! When most of these residents are on basic pension with no private pension, this is an appalling state of affairs, but do the water companies do anything about it? no - these residents are nothing more than "water cows" making massive profits for the companies and getting very little in return.

I am totally fed up of watching our standard of living plummet Meanwhile those that are totally bone idle or serial baby breeders are handsomely rewarded by a biased system

What is it about the British !!!!!!! Pay for what you use , whether it be elec, gas or water? Our refusal to pay our share and the older generations who still live with the notion that ' what they get is because they are entitled to it' has caused this problem. The amount of water should be metered , if you don't like your bill, use less water.....

In my opinion, this is a move in the WRONG direction. People in difficulty through no fault of heir own (not those trying to play the system), should receive enough in benefit for essentials, which of course includes water. Benefit of all kinds, including the State Pension whouc be enough to meet needs. And then it should be up to each as to how they spend that money. If people quander and do NOT make their utility bills a priority, they should punished. Treat people as 'grown-ups'. To have a system where people claim separately for each thing COSTS TOO MUCH in administration. Ditto with WINTER FUEL payments for the elderly. The State Pension should be increased to the proper level but then NO extras for tv licences, Christmas, etc. It is insulting.

Same old,same old.Those who have worked all their lives will subsidise the water bills of those that have never had a job.No wonder Britains work ethic is down the pan,you're punished for having a job.......work don't pay.

Why? Pay for what you use. End of.

>>which costs 11 per cent of households more than 5 per cent of their disposable income I call BS: Water bills are NOT disposable income

And in the london olympics, athletes who do well and earn medals will be stripped of those medals, as their achievements are unfair to the fat, the unfit, the lazy and the slow. All medals must be distributed equally amongst all athletes, for fairness.

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